Ford to retain upto 50% in Jaguar, Rover biz

The line-up of suitors, including Tata Motors, Mahindra & Mahindra and a slew of private equity players, currently circling Ford’s Jaguar and Land Rover brands may not need to pick up the ailing businesses at one fell swoop.

According to auto analysts quoted in international media, Ford is planning to retain a 30-50% holding in the Jaguar and Land Rover businesses, the backbone of Ford’s luxury stable.

By opting not to sell the entire stake, Ford may, in fact, make it somewhat easier for the deal to go through because it may substantially reduce the acquisition cost for any bidder and also enable Ford to get a good price. While Ford has never publicly discussed the deal, analysts have estimated the valuation of the two entities at $1.9 billion.

Read more in The Economic Times article.

Tatas may be sole bidder for Jaguar, LR

Tata Motors is inching closer to acquiring Jaguar and Land Rover. Sources in the know told DNA Money that the Tatas are the only serious bidder for the Jaguar-Land Rover (JRM) marquee now.According to them, Mahindra & Mahindra is yet to put in a formal bid for the two brands.

Tata Motors is on a good wicket, because the other strong contenders, namely the who’s who of global private-equity firms, named as possible bidders, may also not pass muster.Ford Motor Company, it seems, is keen on selling the two brands to dedicated car companies only.

The Tatas have appointed Morgan Stanley as their merchant banker for the transaction and they may be ready to pay between $1.5-2 billion.

Read more in The DNA Money article.

Tata Motors may bid for Ford's Jaguar, Land Rover

Tata Motors, India's biggest automobile company, is understood to be in early stages of evaluating a bid for acquiring the Jaguar and Land Rover marques from Ford Motor, British media reports said.

Tata Motors is understood to have instructed advisers in the past fortnight to begin evaluating the merits of a joint offer for Jaguar and Land Rover, which have been earmarked for disposal by struggling American car giant Ford, 'The Daily Telegraph' said.

If successful, it would rank among India's biggest overseas takeover deals, the report said, citing unidentified sources.The report also said Tata Motors is understood to have signed a confidentiality agreement with Ford in recent days.

Besides Tata, other car makers may be interested in bidding, while a formal auction would also be likely to attract private equity firms, it added.

Read more in The Economic Times article.

Amtek Auto close to $40 mn deal

Auto parts maker Amtek Auto Ltd is close to buying an aluminium foundry in the UK from J L French Automotive Castings for an enterprise value of about $40 million, two sources close to the deal said on Thursday.

The unit, which sells aluminium casts and machined parts to automakers including Ford and PSA Peugeot Citroen, has annual sales of about $80 million and a 20,000 tonne capacity, the sources said.

The deal could be valued at about 4 times core earnings, they said.

Amtek's spokesman declined comment.

Tatas in talks for stake in Visteon

Tata AutoComp Systems (Taco) and French auto parts maker Valeo are believed to be in preliminary stages of discussions to acquire a stake in NYSE-listed ailing automotive supplier Visteon Corporation.

Sources close to the development said the acquisition of a stake in Visteon, which was spun off from Ford Motor Company in 2000, would cost $1.5-2 billion.

For Taco, a 12-year-old company that is an original equipment supplier to major domestic and multinational car-makers, the acquisition has a strategic fit with its operations. The company has appointed a merchant banker and is awaiting clearance from Visteon to start due diligence.

Valeo is also exploring all options, including a leveraged buyout of Visteon.

Read more in The Business Standard article.